Nemiroff (Nemiroff Holding)

For June, 2012 products of the company are delivered to 72 countries of the world.

Structure of holding

(September, 2012) enter into structure of holding:

• Nemiroff management company,
• Ukrainian vodka company Nemіroff,
• Alko Invest Affiliated Enterprise (AE),
• The trade mission of Nemіroff in Russia and
• The trade mission of Nemіroff in Poland and also
• Nemiroff International with the headquarters in Budapest (Hungary).

Production capacities

• 2 alcoholic beverage plants are located in the city Nemirov (Vinnytsia region, Ukraine).
• Pouring of products in Russia is performed at capacities of JSC Alcoholic Beverage Plant Yaroslavsky (enters into Federal State Unitary Enterprise Rosspirtprom).

• In October, 2010 Nemiroff began pouring of products in Republic of Belarus at capacities of the Republican unitary enterprise "Minsk Crystal" (enters into structure of Belgospishcheprom concern).

Products

For September, 2012 the assortment portfolio of products under the international Nemіroff brand contains 29 positions. The main trademarks are "Ukrainian Honey with Pepper", Nemiroff "Original", "The Ukrainian Birch Special", Nemiroff Premium and Nemiroff LEX.

In 2011 the company offered the Ukrainian market the first what vodka of a bonus Nemiroff Distinkt segment.

Performance Indicators

2012: Growth in foreign markets

The Nemiroff company continues to increase sales volumes in foreign markets. For the period January-May, 2012 growth of volumes of the shipped products to the CIS countries made 30% in relation to the same period of 2011. For 19% indicators on shipments increased by other foreign markets, including Germany, Turkey, Iraq, China, the USA, Italy. Indicators of sales of drinks of Nemiroff in Duty Free network grew by 35%.

"For the last year we repeatedly had an opportunity to be convinced of the huge force of a brand of Nemiroff and its global potential. For example, according to the rating of 'The Millionaires Club' in 2011 Nemiroff entered in top-3 world leaders in vodka sales volumes. And retail audit by strong alcohol of RTRI company based on 2011 shows that the brand of Nemiroff is an absolute market leader of vodka in Ukraine. Consumers around the world know that Nemiroff is permanently stable quality and unique taste of drinks, and their choice is the cornerstone of the rating researches confirming leadership of a brand of Nemiroff. As for Russia, the market of vodka No. 1 in the world, the company strongly intends to return the market positions. The invariable interest of the Russian consumers in our products allows us to look forward with optimism", – the chairman of the board of directors of DP UVK Nemiroff Alexander Glus says.

Tax deductions

On September 7, 2012 the Ukrainian magazine "Korrespondent" published the rating of "Top-20 of the largest taxpayers of Ukraine". The Ukrainian vodka company Nemiroff became the exclusive representative of producers of strong alcohol in the rating of the best taxpayers.

The main corporate taxpayers in the budget of Ukraine were defined on the basis of data of the State Tax Administration. From 20 participating companies of rating eleven – with the foreign capital and nine – with domestic. Three companies represent a public sector.

According to the Korrespondent magazine, the Ukrainian vodka company Nemiroff took the 18th position of rating, and became the only producer of alcoholic beverages which got in top-20 taxpayers. Moreover, the Ukrainian vodka company is recognized the largest taxpayer of Vinnytsia region.

The amount of the means deducted by the company of budgets of different level annually increases:

• 2008 – 408.11 million UAH.
• 2009 – 592.44 million UAH.
• 2010 – 814.91 million UAH.
• 2011 – 951.52 million UAH.

The company continues to increase indicators and in 2012. So, in the first half of the year 2012 the total amount of tax deductions of the enterprise is 372.98 million UAH whereas indicators of the same period of 2011 were 318.7 million UAH.

History

2011: Conflict of shareholders

At the beginning of 2011 shareholders of holding Yakov Gribov and Anatoly Kipish who in total possess 74.96% of Nemiroff Vodka Ltd parent company quarreled with one more shareholder — Alexander Glusem controlling 25.04% of shares. Whether disagreements on a number of questions became the cause of conflict, in particular, to sell the company to Rustam Tariko offering for this asset of 300 million dollars. Then shareholders disagreed concerning the development strategy of the company.

The court of Nicosia (Cyprus) prohibited Gribov and Kipish to take a number of actions concerning activity of the company. Including – to make any changes to a management structure of Nemiroff Holdings Ltd company and its affiliated enterprises.

In August, 2011 Mushrooms and Kipish replaced the head of the Moscow trading house "Nemiroff" Grigory Savinov then interruptions in supply of vodka of Nemiroff to Russia began, and in October, 2011 shipments of products stopped absolutely. Alexander Glusyu out managed to sue Savinov's recovery in a position then deliveries were resumed.

2012: Resuming of deliveries to Russia

• In February, 2012 it became known that the enterprises of the Ukrainian holding Nemiroff resume supply of alcoholic products to Russia which was interrupted in the fall of 2011 on the cause of conflict of shareholders. At the end of 2011, shipment of vodka of Nemiroff on the Russian market was reduced by 63.1%. The producer intends to return on the previous level by May, 2012, Kommersant writes. As expected, in March the volume of shipment will be about 200 thousand gave.

Resuming of deliveries can interfere with the implementation of plans of Gribov to organize pouring of vodka of Nemiroff at the plants of Tatspirtprom. As the representative of the Russian company Aydar Gizzatullin reported Kommersant, the agreement can be signed not earlier than the middle of March, 2012. According to him, the beginning of supply of vodka of Nemiroff from Ukraine can have a negative impact on results of negotiations. Before Glus said that the conclusion of the similar agreement without its sanction will be illegitimate, and products made thus will be considered as counterfeit.

• On August 27, 2012 it became known of the termination of office-work in the Moscow Arbitration court concerning the CEO of Nemiroff Trading House LLC Grigory Savinov. According to the claimant representing the interests of a part of the shareholders who provoked the corporate conflict in Nemiroff, implementation of illegal actions as the head was imputed to G. Savinov

official representative office of vodka giant in Russia.

At the moment fight of UVK Nemiroff for reinstatement of the legal head of the Russian representative office G. Savinov and resuming of deliveries to the Russian Federation was not ended. Now the Ukrainian producer intends to try to obtain the satisfaction of the claim for Savinov's recovery as the head in Federal arbitration court of the Moscow district (earlier corresponding claim of UVK Nemiroff was rejected). On the available data, the writ of appeal will be filed in the next few days.